P&G CEO says company on track to meet long-term growth targets

AnjaliCordeiro

NEW YORK (MarketWatch) -- Procter & Gamble Co. (PG) is on track to meet its long-term growth targets and will further expand in high margin businesses like health and beauty, Chief Executive A.G. Lafley said Friday.

Speaking at a Sanford Bernstein conference that was Webcast, Lafley described P&G as "a much stronger company than we have been in many years." In recent weeks investors have appeared to be more cautious on P&G's prospects and have pushed the stock lower over the last month. P&G's shares are down slightly for the year, even though the broad market has been hitting record levels.

When P&G reported quarterly results in May, investors were disappointed that the company's earnings only matched analysts' expectations and that the company also forecast fiscal fourth-quarter earnings at, or just below, analysts' expectations.

P&G's long-term targets call for internal sales growth of 4% to 6%. Lafley said the company continues to migrate its portfolio to faster-growing and higher margin businesses like beauty and health care. Lafley said he was confident that the company "will sustain growth in line with long term targets."

The company's strategies appear to be right for the "forseeable future", said Lafley.

Some investors have speculated that the company might rid itself of lower performing businesses.

"We are always looking at how we can maximize value creation," said Lafley. The company would consider selling or spinning of a business if it felt that could create more value, he said.

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